Pivoting, Expanding, Building Resilience
Wendy Shen On Surviving the Trade War
“We have no time for preparation, it is very uncertain.” That’s how Wendy Shen, President and CEO of FLOMO/Nygala Corp, describes her reaction to recent tariff hikes and its impact on her business. As we celebrate Asian American and Pacific Islander (AAPI) Heritage Month—a time to recognize the vital contributions of AAPI communities—it’s also critical to examine the policy decisions that disproportionately affect them, including sudden shifts in U.S. trade policy.
Wendy Shen spoke with Forbes Women about the impact of tariffs on small businesses like hers, and we continued that conversation to tap into her wisdom on how WBEs in the network can navigate these challenging times.
Let’s start with a re-introduction: please briefly remind our audiences who you are and what you do!
My name is Wendy Shen. I'm the president and CEO of FLOMO/Nygala Corp andI've also been on the WBEC NY-DMV Board of Directors for three years. I love engaging with both the Board and other WBEs!
FLOMO is an import supplier, wholesaler, and product developer of gift bags and party, stationery, crafting and holiday products. Our products are known for quality and innovation and every quarter, we always meet with customers, ranging from major retailers to specialty shops, to ensure we continue coming out doing things differently for our consumers.
I've been doing this for about 30 years already and our 24/7 team, headquartered in New Jersey with partners in Taiwan and China, is very strong. As well as celebration, one of the core values of my company is diversity. Finally, I’ve always been passionate about giving back. My parents run an educational foundation so I think it’s a part of my DNA!
So tell us how things have been going lately with the recent tariff challenges? How has this impacted your business?
All of a sudden, tariffs have jumped dramatically—first from 10% to 20%, and now all the way up to 145% in some cases. The past two months have just been a lot of work, day and night, talking to customers and factories to try to see what we can do.
As of May 14, they’ve announced a reduction to 30% on imports from China. That sounds like a relief, but it’s not as simple as it seems. Many people assume that a 30% tariff just means a 30% increase in cost—but that’s not the whole picture. In 2017, Trump already bumped tariffs up 25%. Add another 30%. Then add duty which for our products is around 11% and it’s a huge cost burden. A slap in the face. Not to mention for some products, we’re not even making 30% profit. So how are we going to be able to pay a 30% tariff? It's just a very uncertain time with no room for preparation. Today it’s 10%. Tomorrow 20%, 30%, 145%, and now it’s come back down to 30%.
We already have orders from customers with previous prices. It takes a lot of time and resources talking to customers, trying to renegotiate. And they expect us to adapt quickly. If we can’t adjust, we risk losing those relationships—and without strong retailer partnerships, we lose future sales. And so, we’re often taking the hit ourselves and absorb big part of the tariff ourselves, but this is not sustainable. How much cash do people think small businesses actually keep in the bank? It's not endless. And once it's burned through, how can you keep operating? And the worst part? Everyone in the industry is dealing with the same challenge.
What are the solutions for the short term as this instability continues? How can you and other affected WBEs adapt?
Some people think it’s just a matter of waiting for the tariffs to come down but the reality is, even a short-term increase causes long-term damage. These past two and a half months have already taken a serious toll. Tariffs might be temporary, but their impact is not. Profit margins are shrinking, and even if the rate drops now, the harm is already done.
I’m focusing on identifying which items are profitable and which are not, and looking carefully at where we can reduce costs. But we already run a lean operation—there isn’t much left to cut. And I don’t want to reduce staff, because our people are the company’s greatest asset.
The damage also extends to inventory decisions. Do we hold inventory and pay higher costs, or stop importing altogether? I usually import about $1 to 1.5 million in goods every month. Financially, we’re still in a strong position, but with the new tariffs, we have to be more cautious. We’re holding on to our cash reserves and being strategic about what and when we import. When the tariff rate was 145%, we stopped imports completely for two months. Fortunately, we have some inventory to sell and keep business going.
Fortunately, since 2017, we've moved 50% of our production out of China to countries like Vietnam, Indonesia, and India. But let’s be honest—those countries still aren’t on par with China when it comes to production quality and efficiency. China has had 30+ years of support and knowledge transfer from places like Taiwan, Japan, and Hong Kong. Vietnam and Indonesia have only had seven or eight years, and it's going to take another 30 or 40 before they can match that level of capability. People might think, “It’s just a gift bag”—but these products involve much more than you realize: foil stamping, glitter, handwork, accessories, and specialized components. The infrastructure just isn’t there yet in other countries. So while we’re diversifying, we also have to be realistic about the limitations and the real, lasting impact of trade policy decisions.
Is manufacturing domestically an option?
I wish I could manufacture in the U.S., but the reality is that there are no companies are willing to produce here due to much higher cost and lack of materials . That’s why so much production is done overseas. Not everything can be made in the U.S.—and even for the products that could be, there are major challenges. We don’t have enough of the necessary components, the material, accessories, infrastructure, or the machinery. On top of that, there simply isn’t enough labor willing to do this kind of work, especially at lower wages. The rent, wages, insurance and tax are much higher than overseas. The reality is that if we paid U.S. wages for these jobs, the products wouldn’t be competitively priced.
How does this situation compare to challenges you’ve faced in the past?
It's reminding me of the uncertainty the pandemic brought. During that time, costs surged immediately, cutting into profits and draining cash flow. Freight costs skyrocketed—from $3,000 per container to $24,000. That’s an eightfold increase. It felt like everyone had to start over from scratch. Business came to a halt—some for three months, others for six. It was a major disruption. But at least customers understood, because it happened everywhere worldwide. And at least we had the time to discuss with our teams (even if over Zoom) how we can adapt...
And then during the recession, we had a few months or a month or year to plan right? Now, things are changing so quickly and we’re constantly renegotiating prices with customers.
Tariffs are a more complicated financial hit. And for small businesses, it's devastating because there's no time to prepare or budget. You lose your cash overnight.
Where do you see FLOMO heading in the next five years?
Overall, we’re focusing on maintaining healthy cash flow and doubling down on our strengths—especially product development. We take pride in the fact that we’re not just importers. We specialize in customization and innovation, and we plan to continue building on that foundation. We are a flexible company, and are using that to our advantage.
Looking ahead, we’ll keep a close eye on cash flow to ensure we stay profitable. We’ll also continue to invest in technology to streamline operations and improve efficiency. Another key focus will be building international brand awareness—updating our website in multiple languages, improving design for global audiences, and using digital tools for data mining and customer discovery. I’ve started working on increasing our digital presence. We’re starting to build a stronger online presence to raise brand awareness, both in the U.S. and internationally.
I’m also considering hiring sales reps in different countries. If we can find just one or two good customers, that could mean a million dollars in business. So we’re staying focused on strategic growth, international expansion, and smart use of digital tools to get us there.
Additionally, we’ve begun investing in automation—especially in areas like product development and internal operations. It's not just about using AI tools like ChatGPT for routine tasks; it's about rethinking how we streamline repetitive work and improve our processes. We've been working on this for about a month now and plan to continue in the years ahead.
Finally, not long ago, you could claim a rebate on exports, making international markets very attractive for our near future. We sell to Mexico now, the Caribbean, Guatemala, El Salvador... We want to sell to more countries like Australia, UK and South Africa and I think this has to happen because we don't want to wait until the tariffs come down. We're going to just start chasing new markets. The goal is to diversify our risk.
Have you seen any response or outreach from policymakers or trade organizations about the kind of disproportionate impact on small and minority and women-owned businesses?
I don’t think U.S. policymakers are really paying attention to small businesses—at least not from what I’ve seen. We’re just a small business—“small potatoes,” I guess—and we’re not on anyone’s radar.
I talk to a lot of other WBEs, and they all say the same thing: no one reaches out to help us or offer any incentives. Meanwhile, other countries like China and Taiwan are already supporting their small businesses—with low-interest financing, capital support, or even export incentives. I personally don’t need a loan, but many small businesses do. That kind of support would make a real difference.
In the U.S., the only incentives seem to go to manufacturers. But as importers, we also create jobs. We handle logistics, warehousing, distribution, and in many cases, we even re-export goods. That should be recognized and incentivized too.
I serve on the New Jersey District Export Council (NJDEC), which supports exporters. Everyone else there is a manufacturer—I’m the only importer. And even though I contribute advice and support, I’ve never received any help from the state, federal government, or small business programs.
What has your family’s foundation has done and how does that connect with strengthening your own company culture?
My parents dedicated their life savings to two foundations, one of which is the FLOMO Educational Foundation, created to support underprivileged children in Taiwan—especially in learning English, which our parents always believed was essential for global competitiveness. We started by sending 55 teachers to schools to offer after-school English lessons, and during the pandemic, we shifted to a digital learning platform. Over the years, we've also supported kids gifted in subjects like math and science, helping them improve their English so they can compete globally. We teach digital skills too, like programming through game-based learning.
The foundation is run entirely from our family’s funds—we don’t do fundraising—but many of our employees have become volunteer board members to give back. While we don’t ask for donations, we welcome volunteers—especially educators or professionals passionate about helping kids learn English—to join our mission and contribute on our platform. In this uncertain time, we believe it's important to come together, share resources, and support each other across both product and service industries to navigate the challenges ahead.
Community involvement is something that's part of our DNA, and despite everything going on, FLOMO will also continue to give back.
Finally, as an Asian American, do you have any reflections as AAPI Heritage month for fellow women entrepreneurs in the context that we're in?
I believe that celebrating all heritages is incredibly important. From my experience, immigrants—whether they’re first, second generation, or beyond—are some of the most hardworking people. Education, determination, and the desire to succeed are deeply rooted values in many of our communities.
And this shouldn't stop with us. It’s crucial we continue educating and mentoring the next generation, so they understand that through hard work and education, they can achieve their goals. And equally important is the idea of giving back—sharing our experience, guiding others, and lifting up our communities.
FLOMO works with celebratory products, but celebrating our cultures, stories, and promoting diversity is also at the core of what we do. This country is built by people from all over the world, and every culture brings something valuable. So, we should uplift one another, celebrate our diverse heritages, cultures, and stories, and recognize the resilience that lives in each community.
I do believe we need to do more when it comes to advocacy and unity—especially now, as small businesses and AAPI entrepreneurs face growing challenges like these. We haven’t done enough to ensure our voices are heard in policy decisions that deeply impact our communities. These tariffs may be aimed at global trade strategy, but they directly affect many immigrant-owned businesses that rely on international supply chains. There’s a lot of room to grow in how we support one another and how we show up collectively to advocate for fair policies. Let’s make that a priority—not just during heritage months, but every day.